Indian exporters are presently paying 10% tariffs and extra anti-dumping obligation of 4.5% and countervailing obligation of 5.8%. With the US asserting the tariffs of 25% and a penalty from August 1, the exporters will face a minimum of 15% extra obligation over the prevailing tariff construction.
“The seafood trade might be in dire straits affecting 20 million folks. The trade will come to a standstill as we can not take in the 15% enhance in tariffs,” stated Pawan Kumar G, president, Seafood Exporters Affiliation.
Ecuador, India's closest competitor in sea meals exports and is geographically closest to the US, has to pay solely 10% tariff to the US whereas Indonesia pays 19% obligation and Vietnam 20%.
Kumar stated there's additionally uncertainty about how a lot the penalty could be. “We do not know if the brand new tariff will develop into relevant to the consignments price Rs 1500 crores presently crusing on the waters,” he stated.
Frozen shrimp exports account for greater than Rs 40,000 crores of India's whole seafood exports and the US accounts for 40% of India's whole shrimp exports.
